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Contract Law of Saudi Arabia
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Contract Law of Saudi Arabia : ウィキペディア英語版
Contract Law of Saudi Arabia


Contract law in Saudi Arabia is governed by the conservative Hanbali school of Sharia Law, which adopts a fundamentalist and literal interpretation of the Quran.〔Otto, Jan Michiel (2010). ''Sharia Incorporated: A Comparative Overview of the Legal Systems of Twelve Muslim Countries in Past and Present''. p. 167. ISBN 978-90-8728-057-4.〕 Any contract that is not specifically prohibited under Sharia law is legally binding, with no discrimination against foreigners or non-Muslims.
The Hanbali school is the most liberal among the four Sunni schools with respect to the freedom of persons to contract. However, the degree of freedom of contract is governed by the prohibitions in the Quran, and two distinctive doctrines in Sharia law: ''riba'' (usury) and ''ghara'' (speculation).
Unlike other Sharia law jurisdictions, Sharia law remains uncodified in Saudi Arabia due to the strong literalist view of the Hanbali school. There is also no established case reporting in the courts. This has led to much uncertainty and variation in court decisions. Despite being the world's 11th easiest economy to do business in, Saudi Arabia ranks 140th out of 183 economies in terms of enforcement of contracts. (see below: Appendix)
In 2007, King Abdullah initiated legal reforms to modernise the courts and codify Sharia law in Saudi Arabia. The ulama, the religious body, approved a codification of Sharia law in 2010. (see below: Legal Reform)
==Sources of Law in Saudi Arabia==
Saudi Arabia is principally governed by Sharia Law, with royal decrees playing a complementary role.

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